HDFC Bank Q3 Results: India’s largest private sector lender HDFC Bank on Saturday (January 17) announced its third-quarter earnings for the current fiscal
year (FY26), reporting an 11.5 per cent year-on-year rise in net profit for the December 2025 quarter, driven by steady loan growth and higher non-interest income. The bank’s net profit or PAT for the quarter ended December 31, 2025 stood at Rs 18,650 crore, compared with the same period last year. While profit before tax came in at Rs 24,260 crore, according to the bank's exchange filing. Net revenue of the bank grew 8.9 per cent to Rs 45,870 crore during the quarter, compared with Rs 42,110 crore in the corresponding period of the previous year. Net interest income (NII) -- which is the core earnings in the banking sector -- rose 6.4 per cent to Rs 32,620 crore from Rs 30,650 crore a year earlier, the bank said. While the core net interest margin stood at 3.35 per cent on total assets and 3.51 per cent on interest-earning assets. Non-interest income for the quarter came in at Rs 13,250 crore. Operating expenses were reported at Rs 18,770 crore.
New Labour Code impact
Excluding an estimated Rs 800 crore impact due to employee benefits under the New Labour Code, expenses stood at Rs 17,970 crore. The bank’s core cost-to-income ratio was at 39.2 per cent for the quarter.
HDFC Bank Q3 business update
Provisions and contingencies were Rs 2,840 crore after the release of contingent provisions of Rs 1,040 crore, mainly relating to a large borrower group. The total credit cost ratio, excluding this release, was at 0.55 per cent.
HDFC Bank continued to show strong growth in deposits and advances. Its total balance sheet size expanded to Rs 40.89 lakh crore as of December 31, 2025, compared with Rs 37.59 lakh crore a year ago.
Average deposits during the quarter grew 12.2 per cent year-on-year to Rs 27.52 lakh crore. CASA (current account and savings account) deposits rose 9.9 per cent to Rs 8.98 lakh crore.
Total deposits at the end of the quarter stood at Rs 28.60 lakh crore, an increase of 11.6 per cent from the previous year. CASA deposits constituted 33.6 per cent of total deposits.
On the lending side, gross advances grew 11.9 per cent to Rs 28.45 lakh crore. Retail loans increased 6.9 per cent, while loans to small and mid-market enterprises rose 17.2 per cent. Corporate and wholesale loans expanded 10.3 per cent.
Asset quality stable
The bank maintained stable asset quality during the quarter. Gross non-performing assets (NPAs) were at 1.24 per cent of gross advances, unchanged from the September quarter and better than 1.42 per cent a year ago.
Net NPAs stood at 0.42 per cent as on December 31, 2025, reflecting continued focus on risk management and recoveries.
Branch expansion continues
HDFC Bank further strengthened its network, ending December 2025 with 9,616 branches and 21,176 ATMs across 4,170 cities and towns. Around 50 per cent of its branches are located in semi-urban and rural areas. The bank employed over 2.15 lakh people at the end of the quarter, according to the bank.
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